"The greenback has started to stabilize a bit after holding some key technical levels yesterday," said Mark McCormick, the North American Head of FX Strategy at TD Securities, in emailed comments.

The "near-term outlook will hinge on data, and we see a low bar for G10 to consolidate ahead of the July inflation report tomorrow."

Part of the dollar's extension followed stronger US data released Wednesday morning ET.

The Commerce Department's second estimate of Q2 gross domestic product printed at 3%, above economists expectations of 2.7%. Additionally, the ADP Employment Report showed that the private sector added a 237,000 jobs in August, making for the largest monthly increase in five months.

The dollar has been in a tailspin since US President Donald Trump's inauguration, falling by about 10%.

After a relatively quiet August, the dollar began to dip again last week following the Fed's annual Jackson Hole conference. And Tuesday's dip followed North Korea's latest missile launch, after which investors piled into safe-haven assets including gold and the Swiss franc.

"Recall that the dollar was already selling off before the latest developments on the Korean peninsula. The geopolitical developments accelerated the move, and then the profit-taking was triggered," Marc Chandler, global head of currency strategy at Brown Brothers Harriman, said.

"Geopolitical tensions often seem to spur a short-lived even if the sharp reaction in the capital markets."